4805. Bank of Edwardsville (Edwardsville, IL)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
April 15, 1930
Location
Edwardsville, Illinois (38.811, -89.953)

Metadata

Model
gpt-5-mini
Short Digest
7bf419f1

Response Measures

Accommodated withdrawals, Borrowed from banks or large institutions, Public signal of financial health, Capital injected, Books examined

Description

Cashier Frank B. Sanders misappropriated $143,000; discovery prompted a 'slight'/'persistent' run on April 15, 1930. Directors and cashier reimbursed funds, Federal Reserve/armored shipments supplied cash, and the bank continued operations (no suspension or receiver).

Events (1)
1. April 15, 1930 Run
Cause
Bank Specific Adverse Info
Cause Details
Discovery/confession that the cashier Frank B. Sanders misappropriated $143,000 of bank funds to finance motion-picture theaters and other private ventures.
Measures
Directors pledged securities and raised a fund to make up the shortage; cashier reimbursed part of the loss; additional cash/armored car shipment obtained from the Federal Reserve Bank to meet withdrawals.
Newspaper Excerpt
the announcement was made ... to restore public confidence during a slight run on the bank this morning.
Source
newspapers

Newspaper Articles (10)
1. April 15, 1930 St. Louis Post-Dispatch St. Louis, MO
Article from St. Louis Post-Dispatch, April 15, 1930

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LOSS MADE OFFICERS AND RESTITUTION President George W. Meyer Announces F. Sanders Has Turned in Cash and Promised More. DEPOSITOR'S LETTER LEADS TO DISCOVERY Executive Says He Started Investigation After State Auditor's Office Asked Him About Communica- tion. Announcement that Frank cashier the Bank Edwardsville at Edwardsville, had $143,000. all but $7000 of the bank's capitalization using the money finance chain of motion picture theaters other outside business ventures. made today George Meyer. president the bank. Sanders has reimbursed the bank for part of its has promised to convert sufficient of assets to pay back the remainder, said. Meanwhile, he explained, cash has been contributed the members of the Board of Directors to make the difference. Meyer said that money which had been deposited with the bank collateral by borrowers. representative of the State Auditor's fice, at the bank, announced that the sound and roborated statement that the directors had covered the $500,000 Arrives From St. Louis. The was said, to restore public confidence today during slight run the bank, one Edwardsvflle's banks and the second in size by slight margin. Shortly after noon an armored car arrived from St. Louis and in cash carried bank. President Meyer bustled about the banking room tomers, telling them that would be brought over necessary you want draw out, all right: but leave here, put in safe deposit box," he urged. Many business men, friendto bank, appeared to make large deposits conspicuously. Meyer announced that Sanders had been discharged. but would not be prosecuted. State's ney Bohm declared he would take action unless asked to do so by Meyer. At his home. Sanders made general denial of President Meyers' statement. When the reporter sought question him, he exclaimed: "Why. asking me things that wouldn't admit on stack of Bibles mile high." "That all bluff," said W. Hadley, vice president when formed of Sanders' denial. All ficers of the bank, well the State Auditor's present to President Meyer when he made the nouncement. Owns Three Theaters. Sanders, according principal owner of the United Operating Co., which owned the Princess Theater Alton, the Wildey The ater in Edwardsville and the Wood in Wood River. the latter new building worth more than $100,000. The Alton Theater recently sold the Paramount for When the shortage was discov. ered recently, Meyer said. Sanders handed $40,000 in securities and pledged himself to pay more. soon he received his share the from the theater sales. He promised to place mortgage on the Wood River theater to make up the ance of the shortage. Meyer said. Meyer he did not that anything was in his wrong bank until recently when asked him. why don't you answer the letters from the State Meyer replied that he had no such letters and began vestigation. From State Auditor Nicholson Continued on Page Column

2. April 15, 1930 Alton Evening Telegraph Alton, IL
Article from Alton Evening Telegraph, April 15, 1930

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Officials Make Up Full Shortage Frank Saunders Admitted To Return Securities Used Funds Raised in His Wide Business Enterprises Frank Sanders, cashier of the Bank of Edwardsville, national bank with resources excess $3,000,000, Monday night confessed defalcation of $143,000 in securities, according to statement made Telegraph morning George Myers, president of the institution. The confession was made to the Board of Directors, President Myers The directors immediately pledged securities make up the shortage and the bank, Myers said, in the sound condition was before the shortage occurred. Sanders, morning, to representative the Telegraph. denied he had made He would further statement, save that he would make good any shortage. Sanders the said, this morning over securities worth $40,000 to the directors. Bank Ready to Meet Run "run" on the bank in progress this but not considered serious. Only small depositors Large were taking their money were putting money in the bank, officials The Federal Reserve Bank St. Louis sent $500,000 emergency, the money would not be The bank, the president in the same sound condition though defalcation had been committed. All depositors would be paid once and bank would not find necessary to exercise its grace period. Sanders, who has wide business interests, began working in the bank boy. He became cashier when the Bank Edwardsville 1917 enlarged by merger another institution. securities his business officers said. Sanders bank's had no desire to take the assets, but used the ities make loans, with the inten- securtion replacing the was The fact were missing Monday when who had placed some in the bank called for them. Owns Theater String Sanders head of the United Operating Wood Corporation that owns the River Theater and operates Continued on page 5

3. April 15, 1930 Quad-City Times Davenport, IA
Article from Quad-City Times, April 15, 1930

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Defalcation Of Illinois Edwardsville, III., April W. Meyer, president Bank of Edwardsville, announced today that the bank's cashier, Frank Sanders, had misappropriated of bank funds, the money finance motion picture theaters other private ventures. Sanders has reimbursed the bank of the loss, Meyer said, the directors have raised to make the balance, under Sanders' promise raise the money them back in announcement cording to restore public confidence during slight on bank this morning. All of the officers present and representative of state auditor's fice hand corroborate Meyer's statements.

4. April 15, 1930 The Sedalia Democrat Sedalia, MO
Article from The Sedalia Democrat, April 15, 1930

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FUND RAISED TO MAKE UP SHORTAGE By The Associated Press EDWARDSVILLE, III., April 15.George W. Meyer, president of the Bank of Edwardsville, announced today that the bank's cashier, Frank B. Sanders, had misappropriated $143,000 of banks funds, using the money to finance several motion picture theaters and other private business ventures. Sanders has reimbursed the bank for a part of the loss, Meyer said, and the directors have raised a fund to make up the balance, under Sanders promise to raise money to pay them back in full. The announcement was made, according to Meyer, to restore public confidence during a slight run on the bank this morning.

5. April 15, 1930 Belleville Daily Advocate Belleville, IL
Article from Belleville Daily Advocate, April 15, 1930

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Taken By Cashier, Says Head of Bank At Edwardsville HOOVER'S WING OPENS SEASON President of Institution AnOfficial nounces Money To Run Theatres; Run Halted When He Pays Back Part and Directors Pledge Balance. ILL., April Meyer, president the Bank of Edwardsville, an nounced today that the bank's shier, Frank had appropriated $143,000 of bank using the money to finance several motion picture theaters and other private business ventures. Sanders reimbursed the bank for part of loss, Meyer the directors have raised fund to make up the balance, under Sanders' promise to raise the money pay them back full Slight Run Halted The cording to restore confidence during slight the bank this morning All of officers present and representative of the state auditor's office hand to corroborate Meyer's on Sanders has been discharged cashier but not under arrest When the was recently said, Sanders handed over in securities $40.000 cash. Meyer said the cashier principal owner the United Operating which own. the Princess Theater Alton Wildley Theater ville and Woodriver Theater Woodriver latter buildmore than The ing Alton Theater recently Paramount interests for $50.according to Meyer to place Woodriver to make balance his shortage. that recently an investigation of plaint by disappearance stock deposited collateral for loan Sanders public adof He 45 years old, and had been with the bank than The of Edwardsville, foundin has according to its December 31 Deposits on that date totaled $2,700,000 The (Continued to Page Nine)

6. April 16, 1930 The Edwardsville Intelligencer Edwardsville, IL
Article from The Edwardsville Intelligencer, April 16, 1930

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Let Sanity Prevail. Edwardsville yesterday experienced its first bank run, If such It may be termed, during the more than a quarter of a century since the failure of the old Prickett bank. While the Bank of Edwardsville has weathered the storm, both the bank and the community have suffered. Metropolitar newspapers have carried the story to the four corners of the United States under scare headlines on their front pages. The Intelligencer, following its policy of conservative handling of the news and of kindly treatment of Edwardsville Institutions. has not found occasion to herald the unfortunate situation as n catastrophe. It is A regrettable occurrence. but we do not believe it will result in permanent injury to the community 01 any institutions ID it. The Intelligencer. In possession of the facts almost as 4000 as they were discovered at the bank, refrained from publication of any account of them Monday at the request of the officia's of the bank. The Intelligencer believed then that a straight-forward statement of the facts in the case, published on Monday. would have prevented the run on the bank But the bank officials thought otherwise and being unwilling to risk it mistake In judgement when a local Institution was concerned, the Intelligencer said nothing on Monday. The shortage at the Bank of Edwardsville had been made up by the directors before the circumstances became known to the public. Subsequently an announcement was made by state bank examiners to the effect that the bank was in excellent condition. Bank failures which have occurred in various parts of the country during the last few years have been due to general economic conditions In the communities in which the banks were located. "Frozen assets" is the term generally used in-such circumstances. That means that the banks were unable to convert into cash securlties which had been pledged on loans. No such situation exists in Madison County: The economic conditions of the county, due largely to the diversity of its interests, is sound. The banks of the county have been conservatively conducted. None have felt the pinch which has existed elsewhere. The Intelligencer has confidence in Madison County and Its banking institutions. It urges its readers not to be swayed by unfounded rumors.

7. April 16, 1930 Chicago Tribune Chicago, IL
Article from Chicago Tribune, April 16, 1930

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SURVIVING BANKS GET WILLIAMSON COUNTY SUPPORT Few Deposits Withdrawn Despite Failures. Confidence in Williamson county banking where seven banks were closed within week's time was virtually restored today with practically no of deposits in any of the six remaining It was not for the First National bank of Marion to use received by armored truck from St. Louis. The bank paid out $90,000 but Monday, gained in deposits today. Edward B. Clark, representative of the Franklin American Trust company of St. Louis, after an investigation of the Marion Trust and Savings bank as counts stated today. am sure that this bank will not only be able to pay its depositors tull, but believe it can be re-organized and re-opened for with in week after the state bank exam iners their work.' Owing to the closing of many banks at one time the bank examiners will not be able to complete their work as rapidly as usual. Two of the banks remaining open are state banks, The Johnston City State bank and the citizen's state at Creal Springs. The other four are the City National at Herrin and the Forest Nationals at Marion, Herrin and Carterville. Cashier Misuses $143,000. Edwardsville, Ill., April George W. Meyer, president of the Bank of Edwardsville, announced today that the cashier, Frank B Sanders had misappropriated $143,000 of bank funds, using the money to finance several motion pic. ture theaters and other private business ventures. Myers said no charges would be made against Sanders has reimbursed the bank for part of the loss, Meyer said, and the directors have raised a fund to make up the balance, under Sanders' promise to raise the money to pay back in full. He has been discharged as cashier. The announcement was made. according to Meyer, to restore public confidence during slight run on the bank this morning. Fisher Bank Closes. Fisher, Ill., April State bank examiners today took possession of the Fisher State bank and

8. April 16, 1930 St. Louis Globe-Democrat St. Louis, MO
Article from St. Louis Globe-Democrat, April 16, 1930

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PERSISTENT RUN IS WEATHERED Officers Plan to Open Again Today and to Pay in Full All Depositors Who Wish to Make Withdrawals. Charges against Frank Sanders, 45, cashier of the Bank of Edwardsville, whose misappropriation caused persistent the bank, will brought the bank that restitution funds been made, George Meyer, president of the bank, said last night. know about in Attorney Bohm about the prosecution of Sanders. He declined to what action, it say he would State Auditor Nelson, who has jurisdiction over all state banks, said prosecution is up to the direcand the State's Attorney. "We made an examination of the bank some time found shortage." he said. was reported to bank officials and the money has been returned." The Attorney General Oscar Carlstrom has not quested to intervene the bank case. In Illinois the practice the State's Attorney to initiate any proceedings growing out of falcations. The Attorney General does appear such cases cept in instances where the ment of special prosecutor is quested. Weathered Run. The bank weathered the run yesterday and announced this morning to paying positors to their money. The bank an tional shipment cash yesterday afternoon from the Federal Reserve Bank at St. Louis, which with the restoration of the misappropriated funds, puts in position to meet all demands upon it, officials said. Sanders made no statement. care to say anything," reply to requests for his answer to the charge. He started his banking career minor capacity with the old First National Bank of Edwardsville, but became an employe of the Bank Edwardsville fifteen years when the two institutions merged the He lives with his wife and son

9. April 16, 1930 Belleville Daily Advocate Belleville, IL
Article from Belleville Daily Advocate, April 16, 1930

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RIOTING SWEEPS NO PROSECUTION CALCUTTA: MANY OF BANK CASHIER HURT IN CLASHES FOR USING $143,000 CALCUTTA BENGAL INDIA April 16 (AP) Rioting on the streets of Calcutta last night spent itself finally before dawn today in futile attack on the presidency of the General Hospital to which nine Europeans injured in yesterday's clash had been taken Of the nine Europeans in the hospital two were women. One was injured seriously, while another man was in grave condition from the night's fighting. Of 50 injured in the disturbances beginning yesterday morning, 15 were police and 11 Police finally routed the mob. and arrested 20 of their number nine being found on roof tops with piles of bricks and stones beside them. The city quieter today after renewal of the clashes last night when Europeans driving home after the evening out were stoned Street cars were stoned and several wrecked. THREE LEADERS JAILED KARACHI, INDIA, April 16-(P) Police today arrested six leaders of the India national congress They will be taken before a magistrate to answer charges growing out of their participation in the civil disobedience campaign by which Mahatma Gandhi and his devotees hope to win independence from Great Britain The camp of the Satyagrahas, as the Indian Nationalists are called. and the Swarja Ashram and Hindu Jati printing offices, were searched and books, flags and sign boards seized. cashier of the Bank of Edwardsville, will not be prosecuted for misappropriating $143.000 of the bank's funds, George E. Meyer president. said last night. Meyer said Sanders had made restitution of the amount Charges against Sanders, under ordinary conditions. would have to be made by the bank's directors and State's Attorney Bohm and Bohm declared all he knew of the case had been learned from reading the newspapers. He declined to say what action. if any would be taken by him Word of Sanders' shortage caused a persistent run on the bank and additional currency was obtained from the Federal Reserve bank to pay depositors Bank officials declared the bank would continue in operation The misappropriation of bank funds was said by officials to have been due to Sanders financing of string of motion picture houses in Alton, Edwardsville and Woodriver The Alton theater, however was recently sold for $50,000 while the Woodriver house occupies new $100,000 structure. Sanders. according to Meyer, put up $40,000 cash. like amount in securities with the balance coming from a mortgage on the Woodriver theater.

10. April 16, 1930 Dixon Evening Telegraph Dixon, IL
Article from Dixon Evening Telegraph, April 16, 1930

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Cashier Will Make Good His Shortage Edwardsville, III., Apr. 15-(AP)George W. Meyer, President of the Bank of Edwardsville, announced today that the bank's cashier, Frank B. Sanders, had misappropriated $143,000 of bank funds, using the money to finance several motion pic ture theaters and other private busi ness Sanders has reimbursed the bank for a part of the loss, Meyer said and the directors have raised a funo to make up the balance, under San ders' promise to raise the money to pay them back in full. The announcement was made. according to Meyer. to restore publi confidence during a slight run on the bank this morning. All of the o: ficers were present and a representa tive of the State Auditor's office was on hand to corroborate Meyer's statements.